#Liquidity101 liquidity in crypto trading refers to the ability to buy or sell assets at stable prices without significantly affecting the market price. The higher the liquidity, the easier it is to transact at a fair price.
Effects of liquidity on price execution:
•stable prices
•low transaction costs
•fast execution
Strategies to reduce slippage
•choose exchanges with high liquidity
•use limit orders
•monitor the market
•diversify